The metaverse is a term that describes a shared virtual reality where people can interact, create, and consume digital content. It is often seen as the next frontier of the internet, where immersive and social experiences will redefine how we work, play, and communicate.

One of the key drivers of the metaverse is artificial intelligence (A.I), which enables the creation and management of complex and dynamic virtual worlds. A.I can also enhance the user experience by providing personalized recommendations, natural language processing, computer vision, and more.

According to a recent report by McKinsey, the metaverse could generate up to $3 trillion in annual economic value by 2030, accounting for 6% of global GDP. The report identifies four main sources of value:

Content creation and consumption: The metaverse will enable new forms of digital media and entertainment, such as interactive games, live events, virtual concerts, and social media. Users will be able to create and monetize their own content, as well as access a vast library of existing content.

Commerce and advertising: The metaverse will offer new opportunities for online shopping and marketing, such as virtual showrooms, product demonstrations, and immersive ads. Users will be able to buy and sell digital goods and services, as well as physical products that can be delivered in the real world.

Productivity and collaboration: The metaverse will enable new ways of working and learning, such as remote meetings, virtual classrooms, and online training. Users will be able to collaborate across distances and time zones, as well as access specialized tools and resources.

Infrastructure and platforms: The metaverse will require a robust and scalable infrastructure that can support high-quality graphics, audio, and interactivity. This includes cloud computing, edge computing, 5G networks, blockchain, and more. The report also highlights the role of platforms that can provide access to the metaverse, such as social networks, gaming consoles, VR headsets, and smartphones.

The report also outlines some of the challenges and risks that the metaverse poses, such as privacy, security, regulation, ethics, and social impact. It suggests that stakeholders from different sectors and regions should collaborate to ensure that the metaverse is inclusive, sustainable, and beneficial for all.

The metaverse is not a distant future, but a present reality that is evolving rapidly. A.I is one of the key technologies that will shape its development and growth. As the report concludes: “The metaverse is coming. Are you ready?”

Coinbase tells some customers it received subpoena related to Bybit

Coinbase, one of the largest cryptocurrency exchanges in the world, has sent an email to some of its customers informing them that it received a subpoena from the U.S. Commodity Futures Trading Commission (CFTC) related to their trading activity on Bybit, another crypto platform.

The email, which was shared by some users on social media, states that Coinbase is required to produce certain records and information about the customers who have used Bybit, a Singapore-based exchange that offers derivatives trading and is not registered with the CFTC.

The email does not specify the reason for the subpoena or the scope of the investigation, but it advises the customers to consult with their own legal counsel if they have any questions or concerns. Coinbase also assures its customers that it is not a target of the investigation and that it is cooperating with the CFTC as required by law.

“We take our legal obligations seriously and are committed to protecting your privacy and security. We appreciate your understanding and cooperation in this matter,” the email reads.

Bybit is one of the most popular crypto platforms for derivatives trading, which involves betting on the future price movements of cryptocurrencies. However, derivatives trading is subject to strict regulations in the U.S. and other jurisdictions, and many platforms like Bybit do not comply with them.

The CFTC has been cracking down on unregistered crypto platforms that offer derivatives trading to U.S. customers, alleging that they are violating the Commodity Exchange Act and exposing investors to fraud and manipulation risks.

In October, the CFTC announced that it had reached a settlement with BitMEX, another major crypto derivatives platform, which agreed to pay $100 million in civil penalties and to cease offering services to U.S. customers. It is unclear how many Coinbase customers have used Bybit or how much they have traded on the platform. Coinbase did not respond to a request for comment at the time of writing.

The subpoena from the CFTC is another sign of the increasing regulatory scrutiny that the crypto industry is facing in the U.S. and around the world. Coinbase itself has been involved in several disputes with regulators, including the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS).

Coinbase’s CEO Brian Armstrong has been vocal about his frustration with the lack of clarity and consistency in the crypto regulations and has called for more dialogue and collaboration between the industry and the authorities. However, some experts have argued that Coinbase and other crypto platforms need to do more to comply with the existing rules and to protect their customers from potential legal risks.

Statistically, if you are supporting 5 children on a salary of $1,000 per month, you will struggle to provide them better support than someone who  supports three children on a monthly salary of $10,000. In other words, despite how prudent you could be on that $1,000 salary, there is a ceiling on that financial management efficiency.

That takes me to Nigeria where despite having 3x the population of South Africa, South Africa spends close to $100 billion more than Nigeria. To be honest,  even if Nigeria judiciously manages the $33 billion, it will struggle to catch up to deliver decent services to what South Africa does. Of course, with SUVs, yachts, etc as priorities, the “little” $33 billion does not even get into the right things. And that is the national tragedy.

Of course, this is not to say that $33b is not a lot. My point remains that Nigeria needs “effective growth” so that it can have resources to advance its citizens. Why that word “effective” before “growth”? I am not talking of just GDP growth which tracks the aggregate of production activities for finished goods, I am talking about formalizing the economy.

Nigeria does not have effective growth and that is why even though our GDP could be higher than South Africa’s, they have resources to spend more than we. Their market capitalization as a share of GDP is about 280% while Nigeria is below 30%. With that, the market cap of one South African bank can buy all the major banks in the Nigerian stock  exchange, and one South African company can use less than 50% of its value to buy every company listed in Nigeria’s stock exchange!

How do we get Nigeria back? I have shared some ideas here.

Merit-based system – no nation has advanced better than its ability to inspire, motivate and reward via merit. Without a nationally transparent merit-based system, Nigeria cannot progress.

Pragmatic Innovation – focus on what works, over the purity of scoring political goals. The implication is that we have to seek and execute the best ideas irrespective of where they may be coming. I gave an example of how the same team of Central Bank leaders who kept our exchange rate stable for years, within 2012 to 2015, blew it up later. Yes, we must allow data to work and follow the best ideas.

Honest Leadership – the citizens are smarter and can only take cues from their leaders. People willingly pay taxes when taxes work in their lives, they say. If we preach one thing and do another thing, you lose the citizens.

Integrate Rural and Urban Nigeria – we need to have a functioning postal service, to bridge the huge gap between rural and urban Nigeria. I explained how years ago, secondary school kids used to have American and European pen pals, relying 100% on NIPOST. A reliable postal service will unlock massive latent opportunities across Nigeria, from agro to arts to entertainment, in this globalizing world.

Put Rural Wealth in Nigeria’s Balance Sheet /Property Rights – those lands (subject to the land use act), houses, etc should be digitized and recorded so that even those in rural Nigeria can enter the formal economy. It is unfortunate that a man with 100 hectares is considered poor because he has no papers to share with banks, to access credits to train his kids and support his family. Simply, Nigeria must advance its property rights governance, not just in land and physical properties but also intellectual properties.

Comment on Feed

Comment 1: While what you posit is evidently true. How does a nation achieve effective growth, economic-wise? If the nation refuses to allocate the scarce resources it has in the direction of the desired growth, can she grow?

Growth believe is a two-way factor. In agriculture, water and sunlight is needed for plants to grow, but in the desert where you have abundant sunlight, lavishly allocated, plants find it difficult to grow. To grow plants in the desert, it would require a higher level of thinking to develop a controlled environment where the abundance of the sun doesn’t hinder the growth of the crop.

Nigeria’s problem is not lack of resource to engineer growth. I think we have too much. Probably more than we the citizens are aware of. That can be the only reason why our leaders will prefer to buy yachts and SUVs rather than invest in the critical sectors of the economy for tomorrow’s growth.

Comment 2: To put the gap in better context, Nigeria’s 2024 budget per capital is $165, while that of South Africa is $2,225 using Prof’s posted figures. Now you see how huge the gap is. Not adding the fact that Nigeria’s budget is hardly 70% implemented.

What I Told The Senator!